I stand corrected. Still, with a net worth of $3.8 Billion, John Paulson is still impressive, but not the richest Puerto Rico resident.
he’s not really a full time resident of PR. There are loopholes for finance people. That’s why so many bitcoin funds opened up in Puerto Rico.
None of us ex-pats are full-time residents of Puerto Rico. The deal is that you are supposed to spend 6 months a year in PR, and in return you pay zero IRS income taxes, zero PR income taxes, and 75% discount on PR property taxes. In reality you only have to spend 5 months, since one month of travel a year counts as being in PR, as long as that month is not in the States.
Puerto Rico was another on the long list of US historical mistakes. Probably nothing compares to slavery.
The USA owned Puerto Rico as a simple territory for nearly 2 decades, then granted Puerto Ricans USA citizenship 2 weeks before entering World War I, so that Puerto Ricans could be drafted.
Generally, for traders, any long or short-term capital gains income, earned outside PR is not taxed. Any other income, such as dividends and interest, earned outside PR, is taxed by the IRS, but not PR. All income earned inside PR, is taxed by PR (at 14 to 25%), but not by the IRS. Act 60 Business owners (such as Internet sales), on non-PR income pay no IRS taxes, but pay 4% PR taxes. Again, on PR-based income, they full PR taxes. There is no requirement that the income stays in PR. I should also mention that capital gains is calculated from the value on day you move to PR. If you have an unrealized fortune from buying crypto 10 years ago, you can't avoid long term capital gains by moving to PR tomorrow.
I studied it briefly when i went to PR for a family vacation (the Conquistador resort). I couldn't figure out how to do it with my business. I heard there are special exemptions for crypto. It was part of rebuilding PR after the hurricane in like 2016. How much of your taxes are you able to avoid. I see you live in CT, which is a pretty high tax state.